Economics

Transaction costs and partnerships: the case of the rock bands

Article Abstract:

A study on the application of transaction cost economics to rock bands has revealed that individuals form band structures to find an optimal combination of personnel. A transaction will achieve a high level of specifity when either or both agents become dependent on each other. An individual who joins a band has a specific asset that is at risk, considering that each has a degree of monopoly power over the other and an enhanced scope for opportunism.

Transaction costs, technology transfer, and in-house R&D: a study of the Indian private corporate sector

Article Abstract:

The effect of technology imports on in-house research and development costs in Indian corporations was thought to be adverse. The results of the transaction costs framework study indicate that technology imports complement in-house R&D and vice versa. To be competitive, India needs to step up R&D intensities to optimize liberalization of technology transfer. It would facilitate knowledge of what technology the firm needs to import.

Transaction costs have been applied to vertical integration analysis for diverse industrial settings. Such applications have been expanded to account for the impact of technology, appropriability and industrial maturity on corporate change. Greater vertical integration has been established for transaction and production costs. In addition, firms that enter the market at later stages must integrate efficient production systems.